Hunt for missing Iraq millions

Matt Kelley, Washington

Iraq became awash in billions of dollars in cash after the US invasion two years ago, often with few or no controls over how money was spent.

From the $8.8 billion (E6.8bn) provided to Iraq’s interim government to millions provided to US contractors, investigations have detailed a system ripe for abuse.

On Wednesday investigators released a report saying $96.6 million (E74.6m) in cash could not be properly accounted for. This included over $7m (E5.4m) that had disappeared, according to the report from the Special Inspector General for Iraq Reconstruction.

It said $89.4m (E69.1m) in cash payments in south-central Iraq were made without the necessary documentation.

Wednesday’s report accused civilian contract managers of “washing accounts” to try to make the books balance.

Examples of possible misspending in Iraq revealed in recent months include:

“Less than adequate controls” over $8.8bn given to the interim Iraqi government. Nearly $20m (E15.5m) in missing or unaccounted-for equipment.

A lack of rules governing some $600m (E463.5m) in cash handed out by US authorities.